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Use the tables below and Exhibit 1-A, Exhibit 1-B, Exhibit 1-C, Exhibit 1-D to calculate the balances of the information provided below. Assume that the
Use the tables below and Exhibit 1-A, Exhibit 1-B, Exhibit 1-C, Exhibit 1-D to calculate the balances of the information provided below. Assume that the time period for each scenario is 5 years, and the Interest rate is 4%. A. Jamie Lee needs to save a total of $7,000 in order to get started in her cupcake caf venture. She is presently depositing $1,750 a year in a regular savings account. Calculate the future value of these deposits. times Future value of annuity factor Future Value of a Series Current amount of Deposits equals Future value amount $ 0.00 B. Assuming that she leaves her emergency fund of $1,400 untouched, how much will her emergency fund be worth? Regular deposit amount Future Value of a Single Amount times Future value factor equals Future value amount $ 0.00 C. What if Jamie Lee had a relative that could give her money now that she could Invest? What is the minimum amount she would need now to ensure that she had $7,000 when she wanted to open the cupcake caf? Future amount desired times Present Value of a Single Amount Present value factor equals Present value amount $ 0.00 D. As Jamie Lee is planning ahead for operating the cupcake caf, she calculates that she will need $28,000 per year in salary. What is the value of five years of salary when the cupcake caf opens? (Assume that she will take the salary as a one-time payment each year.) Regular amount to be withdrawn times Present Value of a Series of Deposits Present value of annuity factor equals Present value amount $ 0.00
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